Small and midsize businesses are reviewing their finances as the collapse of banks such as Silicon Valley Bank and Signature Bank has created uncertainty. Business owners are moving their cash to other institutions, splitting it between multiple banks, putting it into money-market funds, or purchasing Treasuries.
“The recent banking-industry turmoil is particularly challenging for small businesses that typically do not have large finance teams or sophisticated cash-management strategies. Some small businesses are not taking any action, while others are scrutinizing relationships and habits they took for granted.” – LOQUAT Inc.